Carr’s Group, the farming and food conglomerate, said its flour mills had delivered an ‘excellent performance’ in its first half.
However, the company, which also has assets in the animal feed industry, said revenue in its food group was lower because of weaker commodity prices – despite improved UK volumes.
In a statement for the six months to 28 February 2015, Carr’s said: “The 2014 UK wheat harvest was large. However, the bread-making quality of home-grown wheat was disappointing as a result of the below-average protein levels.”
And it added: “Once again, the flexibility provided by the portside locations of our two northern mills has meant we have been able to source consistently good-quality wheat from both the UK and overseas.
“We are also looking to develop longer-term strategic relationships with our customers and a shared approach to risk management in a period of continued commodity market and exchange rate volatility.”
The company said its Kirkcaldy mill continued to “exceed initial expectations” via “improved operational efficiencies” and an “uplift in volumes”.
Within the whole group, revenue was down 2.8% to £208.6m, from £214.7m the year before and profit before tax was up to £10.6m, a hike of 5.4%.
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